More bad news for home buyers: Real-estate investors are seizing an opening and ramping up purchases

Core Insights - Real estate investors are increasingly purchasing homes in affordable markets as traditional home buyers retreat due to high mortgage rates and home prices [1][2][3] - In Q3 2025, 30% of single-family homes were bought by investors, up from 27% a year ago, indicating a growing trend in investor activity [1][2] - Investors are capitalizing on motivated sellers, leading to higher inventory levels and longer selling periods for homes [4][5] Investor Activity - Investors are particularly active in states with lower-than-average home prices, such as Missouri, Mississippi, and Nevada [6] - In Missouri, nearly 20% of home purchases were made by investors, highlighting the trend in affordable markets [6][7] - Among the largest metropolitan areas, Memphis stands out with one in four homes purchased by investors, followed by St. Louis and Kansas City [7] Pricing Trends - Investors are paying significantly higher prices than typical home buyers, with median investor purchase prices exceeding state median sales prices [8] - In Utah, investors paid 35% more than regular buyers, while in California and New York, the premiums were 23% and 12% respectively [8]